|

Forex Today: UK inflation and the FOMC Minutes will be in the spotlight

The US Dollar managed to regain some balance and stage a tepid rebound helped by the resumption of concerns over US tariffs, as well as a widespread selling pressure in the risk-linked universe.

Here is what you need to know on Wednesday, February 19:

The US Dollar Index (DXY) regained the smile and reversed a multi-day bearish move, briefly trespassing the key 107.00 hurdle on Tuesday. The usual MBA Mortgage Applications are due seconded by Building Permits, Housing Starts, the FOMC Minutes and the API’s weekly report on US crude oil inventories. In addition, the Fed’s Jefferson is expected to speak.

EUR/USD added to Monday’s rejection from recent yearly peaks north of the 1.0500 barrier. The Current Account results in the euro area will be published, followed by the European Commission’s Winter Forecasts.

GBP/USD’s three-day advance met some resistance past 1.2600 the figure, giving away part of the recent strong gains. The publication of UK inflation figures will take centre stage.

Renewed depreciation of the Japanese yen encouraged USD/JPY to reverse the recent bearish move and end the day with humble gains. The Balance of Trade readings and Machinery Orders are due on the Japanese calendar.

AUD/USD struggled to maintain its bullish bias, although it managed well to keep business well above the key 0.6300 level. The Westpac Leading Index and the quarterly Wage Price Index will be released in Oz.

WTI prices added to the optimism seen at the beginning of the week and retested the key $72.00 mark per barrel following renewed supply concerns.

Gold prices extended the auspicious start to the week and climbed further north of the $2,900 mark per ounce troy following the resurgence of the tariff narrative and safe haven demand. Silver prices rallied past the $32.00 mark per ounce to clock weekly peaks.

Author

Pablo Piovano

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

More from Pablo Piovano
Share:

Editor's Picks

EUR/USD seems fragile below 1.1700 as Middle East war boosts energy prices

The EUR/USD pair trades flat at around 1.1680 during the Asian trading session on Tuesday, but broadly seems vulnerable, being close to its five-week low. The major currency pair is under pressure as surging oil prices due to the United States-Israel war with Iran have increased the risks of higher inflation for the Old Continent.

GBP/USD hovers around 1.3400 with bearish pressure intact

GBP/USD edges higher after three days of losses, trading around 1.3400 during the Asian hours on Tuesday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.

Gold sticks to gains above $5,350 amid sustained safe-haven demand; firmer USD caps gains

Gold sticks to its positive bias for the third straight day and trades above the $5,350 level heading into the European session on Tuesday. Concerns about a broader regional conflict in the Middle East continue to weigh on investors' sentiment and underpin demand for the traditional safe-haven bullion.

Stellar risks deeper losses as derivatives metrics turn negative

Stellar is trading red below $0.16 at the time of writing on Tuesday, after a slight recovery the previous day. Weakening derivatives data caps the recovery, while an unfavorable technical outlook projects a deeper correction for the XLM token in the upcoming days.

The market is not panicking it is repricing the probability distribution of Oil and time

At the end of the day, markets do not trade morality or geopolitics. They trade transmission channels. And the only channel that truly matters in this maelstrom runs through the price of energy and the time value of money.

Grass 20% bullish breakout defies broader market weakness

Grass (GRASS) is edging up above $0.30 at the time of writing on Monday. The token’s notable 20% intraday surge stands out amid heightened volatility in the broader crypto market.